Manchin Votes To Raise Taxes On West Virginia Small Businesses

Time and time again, Sen. Joe Manchin (D-WV) has voted with Barack Obama and against West Virginia. Since going to Washington two years ago, Manchin has voted in favor of Obamacare and President Obama’s failed stimulus. He did so despite campaign promises that would not.

Now he’s done it again. Yesterday, Joe Manchin voted with President Obama and the rest of his Democrat sugar daddies to raise taxes on hundreds of thousands of West Virginians.

Thanks to Manchin’s vote, West Virginia small businesses will be hit especially hard, which will seriously hinder job creation.

“Small businesses are the life blood of West Virginia’s economy and Joe Manchin should be sued for malpractice for this vote,” John Raese said. “Voting to increase taxes on small businesses in this economy can only mean one of two things: Joe Manchin is clueless or he just doesn’t care about job creators. Sadly, I think it might be both.”

Background

In West Virginia, The Tax Cuts Have Given Tax Relief To 598,000 People. (“2008 Tax Relief Kit,” U.S. Department Of Treasury, Office Of Tax Policy)

As A Result Of The Tax Cuts:

197,000 taxpayers in West Virginia saw a reduction in their marriage penalty tax.

160,000 taxpayers in West Virginia saw an increase in their child tax credit.

104,000 taxpayers in West Virginia saw a reduction in their capital gains and dividends taxes. (“2008 Tax Relief Kit,” U.S. Department Of Treasury, Office Of Tax Policy)

According To The Heritage Foundation, From 2011 To 2020, The State Of West Virginia Would:

Lose, on average, 3,712 jobs annually.

Lose, per household, $1,187 in total disposable personal income.

See total individual income taxes increase by $1,610 million. (The Heritage Foundation, www.heritage.org, Accessed 10/6/10)

SMALL BUSINESSES WILL BE HIT IF THE 2001 & 2003 TAX CUTS EXPIRE

“Small Businesses Hit Hard: Small Businesses That Employ The Most Workers Would Be Particularly Hard-Hit If The Top Income Tax Rates Go Up.” (“Obama’s Tax Plan: Bad For Economic Growth,” FactSheet #68, The Heritage Foundation, 7/13/10)

“Tax Hikes Won’t Create Jobs Either: Tax Hikes On High-Income Earners Will Cause The Most Productive Small Businesses That Provide Jobs For The Vast Majority Of Workers To Cut Back On Hiring. Higher Taxes On High-Income Earners Will Also Slow Investment, Which Will Further Inhibit Job Creation.”(“Obama’s Tax Plan: Bad For Economic Growth,” FactSheet #68, The Heritage Foundation, 7/13/10)

“‘The Combination Of The High Dividend Tax Rate And High Corporate Tax Rate Raise Serious Concerns Over The Competitiveness For The U.S. As A Place To Locate Investment,’ [Tax Foundation Senior Fellow Robert] Carroll Said. ‘By injecting tax considerations into investment decisions, the double tax reduces the productive capacity of the U.S. economy and serves, ultimately, to reduce the living standards of U.S. citizens.’” (Tax Foundation, “Tax Foundation Report Shows Harmful Effects of Higher Dividend Tax Rates,” Press Release, 6/7/10)

Heritage Foundation: Making The Tax Cuts Permanent For All Taxpayers Is The Best Way Congress Can Help Reverse Economic Trends. “The economy continues to struggle and private businesses are still hesitant to add new workers. The best way Congress can help reverse these ominous trends right now is to make permanent the 2001 and 2003 tax cuts for all taxpayers.” (“Obama’s Tax Plan: Bad For Economic Growth,” FactSheet #68, The Heritage Foundation, 7/13/10)

According To A Former CBO Director, Imposing Higher Taxes On The Upper-Income Brackets Would Be Bad For Job-Creating Small Businesses, Which Often Pay Taxes Under The Individual Income Tax Code, Potentially Reducing Small Business Hiring By 18%. “Since households and governments are tapped out, nothing should be allowed to impede the chances for business spending, which is the best hope for generating future economic growth, according to Douglas Holtz-Eakin, a former Congressional Budget Office director who now runs a Republican think tank. Holtz-Eakin believes that imposing higher taxes on those in the upper-income brackets would be bad for many job-creating small businesses, which often pay taxes under the individual income tax code. He calculates that an increase in the top rate could reduce small business hiring by 18%.” (Jeanne Sahadi, “Tax Hikes For The Rich: Can The Economy Afford Them?” CNNMoney.com, 7/26/10)

“‘Allowing The Tax Cuts To Expire For High-Income Filers All At Once Next Year Would Be Taking Too Large A Risk With The Fragile Recovery,’ Said Economist Mark Zandi, Who Has Served As A Consultant To Members Of Both Parties.” (Jeanne Sahadi, “Tax Hikes For The Rich: Can The Economy Afford Them?” CNNMoney.com, 7/26/10)

NOTE: “[75] Percent Of Small Businesses Are Structured As Pass Through Entities, They Pay Their Business Taxes At The Individual Level.” (NFIB, “The Top Ten Reasons ‘America’s Affordable Health Choices Act Of 2009’ Is The Wrong Approach For Small Business,” www.nfib.com, Accessed 9/19/10)

Personal Income Taxes Are Essentially The Same Thing As Small Business Taxes. “Unlike corporations, small businesses usually don’t pay their own taxes. Rather, business profits flow through to the business owner. The business owner pays taxes on her small business by adding the profits to her income tax form. Therefore, personal income taxes are the same thing as small business taxes.” (Ryan Ellis, “Majority Of Small Business Sector Facing Higher Taxes Under Obama Plan,” Americans For Tax Reform, 7/26/10)

“According To The IRS, Most Small Business Profits Pay Taxes In Households Making More Than $200,000 Per Year. The IRS keeps track of two types of small business income: sole proprietors, and ‘pass-through’ entities like partnerships and S-corporations.” (Ryan Ellis, “Majority Of Small Business Sector Facing Higher Taxes Under Obama Plan,” Americans For Tax Reform, 7/26/10)

“A Majority Of Small Business Profits Will Face A Tax Hike Under The Obama-Pelosi-Reid Plan.” “There were 30 million tax returns reporting small business income in 2008. On net (profits reduced by losses), these owners reported business profits of $981 billion. A large chunk of this net profit–$488 billion—faced taxation in households making more than $200,000 per year. A majority of small business profits will face a tax rate hike under the Obama-Pelosi-Reid plan.” (Ryan Ellis, “Majority Of Small Business Sector Facing Higher Taxes Under Obama Plan,” Americans For Tax Reform, 7/26/10)

“34 Percent Of Sole Proprietor Profits Will Face A Tax Rate Hike Under The Obama-Pelosi-Reid Tax Hike Plan.” “There were 22 million tax returns reporting sole proprietor income in 2008. On net (profits reduced by losses), these owners reported business profits of $264 billion. A large chunk of this net profit–$90 billion—faced taxation in households making more than $200,000 per year. 34 percent of sole proprietor profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.” (Ryan Ellis, “Majority Of Small Business Sector Facing Higher Taxes Under Obama Plan,” Americans For Tax Reform, 7/26/10)

“55 Percent Of S-Corporation And Partnership Profits Will Face A Tax Rate Hike Under The Obama-Pelosi-Reid Tax Hike Plan.” “There were 8 million partners and S-corporation shareholders in 2008. On net (profits reduced by losses), these owners reported business profits of $717 billion. A majority of this profit–$398 billion—faced taxation in households making more than $200,000 per year. 55 percent of S-corporation and partnership profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.” (Ryan Ellis, “Majority Of Small Business Sector Facing Higher Taxes Under Obama Plan,” Americans For Tax Reform, 7/26/10)

NFIB: Making Permanent The Tax Cuts Passed In 2001 And 2003 “Would Be Especially Helpful To Approximately 85 Percent Of Small Businesses That File Tax Returns As Individuals.” (National Federation Of Independent Business,www.nfib.com, Accessed 9/19/10)

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